Bernstein: Japanese and European semiconductor equipment manufacturers are brewing price increases, and the sector may usher in a new catalyst BlockBeats News: On June 15th, Wall Street investment bank Bernstein stated in a latest report that semiconductor equipment companies are showing signs of price increases, and related stocks are expected to regain investor attention. In the past few months, the market has been increasingly chasing commodity technology stocks, as expectations of price increases have emerged in areas such as storage, analog chips, wafers, and packaging substrates. In contrast, although equipment stocks benefit from long-term expansion cycles, they lack clear price catalysis. But Bernstein believes that the price increase in the commodity technology industry will ultimately translate into capital expenditure expansion, and equipment manufacturers themselves also have room to raise prices. Japanese equipment manufacturers are the focus of this round of changes. The report points out that most companies such as Tokyo Electronics and Screen price in Japanese yen, and the significant depreciation of the yen against the US dollar in the past three years has provided a basis for them to readjust their prices. More importantly, the attitude of manufacturers is changing. Previously, equipment companies were cautious about price increases, but now they have begun to try to reflect expedited delivery, material costs, labor costs, and the added value brought by new models in their prices. Tokyo Electronics hopes to increase its gross profit margin to over 50% and bring its operating profit margin closer to 35% through more aggressive pricing. Screen is also pushing for a two-stage price increase: first discussing inflation related price adjustments with customers, and then striving for higher prices around new products and additional features. Bernstein believes that Kokusai may also follow this trend. This price increase logic is particularly advantageous for Japanese equipment companies. In contrast, companies such as DISCO, Lasertec, and Advantest have already experienced significant profit margin expansion, and pricing currencies are more mixed, so the incremental impact of further price increases may be milder. European equipment leaders also benefit from product upgrades. The report mentions that ASML's new generation EUV equipment may bring significant price increases, and advanced packaging equipment manufacturer Besi will also benefit from improved product structure. In the current tight supply environment, high-end equipment manufacturers may not only raise prices through new products, but also charge a premium for faster delivery. Overall, Bernstein's judgment is that the investment logic of semiconductor equipment stocks is shifting from simply relying on customer expansion to improving their own prices and profit margins. As price increases in storage and wafer industries drive a new round of capital expenditures, equipment manufacturers may also begin to share the dividends of this cycle. For the market, companies such as Tokyo Electronics, Screen, Kokusai, and ASML will be key targets for observing whether this round of price changes can be realized.